American Benefits Council Stresses Importance of 401k Fee Disclosure Rules
WASHINGTON, DC, March 6, 2007 -- "Employers are asking hard questions regarding various 401k plan services and fees and are obtaining answers that give them the tools to negotiate effectively for lower fees and to provide meaningful information to participants," said Robert G. Chambers of the Charlotte, North Carolina, law firm of Helms Mulliss & Wicker, testifying on behalf of the American Benefits Council before the House Education and Labor Committee today. Chambers has been an expert in the field of employee benefits for more than 30 years and serves as chair of the Council's board of directors.
The Council commended the committee as well as the U.S. Department of Labor (DOL) and the Government Accountability Office (GAO) for their diligent examination of this important issue. Chambers said: "The success of the 401k plan system is dependent on many things, including the willingness of employers to offer these plans and the willingness of employees to participate in them. Clear, meaningful disclosure is needed; overly complicated and burdensome rules could only hinder retirement security," Chambers said.
"The Council believes that saving through employer-sponsored benefit plans is a critical part of every employee's personal financial security," Chambers continued. "Therefore Congress should be careful not to address the fee issue in such a way that would impose undue costs on employers and thereby undermine the voluntary employer-sponsored system or inadvertently increase fees."
"The Council is committed to working with the government to make appropriate improvements to 401k fee disclosure," Chambers concluded. "Unquestionably, defined contribution plans have become the primary retirement vehicle for millions of Americans. Our goal is an effective and fair 401k system that functions in a transparent manner and provides meaningful benefits at a fair price."
A copy of Chambers' full testimony is available on the Council's Web site. James A. Klein, Council president, and Lynn Dudley, Council vice president, retirement policy, are available to comment further on this issue. To arrange an interview, please contact Deanna Johnson, APR, Council director, communications, at djohnson@abcstaff.org, or Jason Hammersla, Council manager, communications & publications, at jhammersla@abcstaff.org. Both can be reached by phone at (202) 289-6700. After office hours, Johnson can be reached by cell phone at (202) 442-4140 and Hammersla can be reached by cell phone at (202) 422-4652.
About The American Benefits Council
The American Benefits Council is the national trade association for companies concerned about federal legislation and regulations affecting all aspects of the employee benefits system. The Council’s members represent the entire spectrum of the private employee benefits community and either sponsor directly or administer retirement and health plans covering more than 100 million Americans.
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